Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 276.105

  (1)   This section applies if:

  (a)   a * member of an * AMIT in respect of an income year has, for the income year, a * determined member component of a character relating to assessable income in respect of the AMIT; and

  (b)   either:

  (i)   unless subparagraph   (ii) applies--the member is a foreign resident at the end of the income year; or

  (ii)   if the member is, in respect of that determined member component, a beneficiary in the capacity of a trustee of another trust--a trustee of the other trust is a foreign resident at the end of the income year; and

  (c)   the AMIT is not a * withholding MIT.

  (2)   The trustee of the * AMIT is to be assessed and is liable to pay income tax:

  (a)   if subparagraph   (1)(b)(i) applies and the * member is not a company--in respect of the amount mentioned in subsection   (3) as if it were the income of an individual and were not subject to any deduction; or

  (b)   if subparagraph   (1)(b)(i) applies and the member is a company--in respect of the amount mentioned in subsection   (3) at the rate declared by the Parliament for the purposes of this paragraph; or

  (c)   if subparagraph   (1)(b)(ii) applies--in respect of the amount mentioned in subsection   (4) or (5) at the rate declared by the Parliament for the purposes of this paragraph.

Note:   The rates are set out in the following provisions:

(a)   for paragraph   (a)--subsection   12(6A) of the Income Tax Rates Act 1986 and Schedule   10A to that Act;

(b)   for paragraph   (b)--paragraph   28A(a) of that Act;

(c)   for paragraph   (c)--paragraph   28A(b) of that Act.

  (3)   The amount is the * determined member component, to the extent that the component:

  (a)   is attributable to a period when the * member was an Australian resident; or

  (b)   is attributable to a period when the member was not an Australian resident and is attributable to sources in Australia.

  (4)   The amount is the * determined member component, to the extent that the component is attributable to sources in Australia.

  (5)   For the purposes of subsection   (4), treat the entire amount of the * determined member component as not being attributable to sources in Australia if it is of the character of:

  (a)   a * discount capital gain from a * CGT asset that is not * taxable Australian property; or

  (b)   a * capital gain (other than a discount capital gain) from a CGT asset that is not taxable Australian property.

Exception for component reflected in AMIT DIR payment or fund payment

  (6)   Subsection   (2) does not apply to the extent that the * determined member component is reflected in an * AMIT DIR payment or a * fund payment, if an amount in respect of the payment:

  (a)   has been withheld from the payment under Subdivision   12 - F or 12 - H in Schedule   1 to the Taxation Administration Act 1953 ; or

  (b)   would be so withheld apart from an exemption from a requirement to withhold under Subdivision   12 - F in that Schedule; or

  (c)   has been paid under Division   12A in that Schedule; or

  (d)   would be so paid apart from an exemption from a requirement to withhold under Subdivision   12 - F in that Schedule.

Gross - up for discount capital gain

  (7)   Subsection   (8) applies if a * determined member component is of the character of:

  (a)   a * discount capital gain from a * CGT asset that is * taxable Australian property; or

  (b)   a discount capital gain from a CGT asset that is not taxable Australian property.

  (8)   For the purposes of this section, treat the amount of the component as being double what it would be apart from this subsection.